The Indian government announced an offer for sale (OFS) of up to 5.04% stake in Cochin Shipyard Ltd on Monday, with a floor price fixed at ₹1,400 per share. This move is part of the Centre's effort to raise funds under its fiscal year 2026-27 disinvestment programme, which targets ₹80,000 crore from asset monetisation and stake sales.
The OFS includes a base offer of 2.52% of the company’s paid-up equity share capital and an additional 2.52% through a green-shoe option. If fully subscribed, the government’s holding in Cochin Shipyard will reduce from 67.91% to 62.87%. The sale is expected to mobilise significant resources to support the government’s budgetary goals, according to livemint.com.
This stake sale aligns with the government’s broader strategy to divest minority stakes in public sector enterprises to meet its ambitious disinvestment targets. Cochin Shipyard, a key player in India’s shipbuilding sector, has attracted investor interest due to its strategic importance and growth potential. The move follows similar minority stake sales in other state-owned companies aimed at enhancing market participation and fiscal consolidation.
The OFS floor price of ₹1,400 per share sets a benchmark for investor interest, with the sale expected to conclude shortly after the announcement. The government’s stake reduction will be closely watched by market participants, as it marks a significant step in the FY27 disinvestment calendar.